Refer to Figure 20

Multiple Choice

Refer to Figure 20.2.If the area 0P₁AB is less than the area 0P₂CD, we can conclude that the price elasticity of demand between point A and point C is

A) Elastic.
B) Inelastic.
C) Unitary elastic.
D) Impossible to determine.It depends on whether the price has increased or decreased.Lower prices result in higher total revenue (price times quantity) only if demand is elastic.